Inflation will cause recession, food prices to spiral ‘much further’: Hedge fund manager

Hayman Capital Management founder and CIO Kyle Bass joined “Mornings with Maria,” Wednesday, warning that inflation will cause a “significant” recession and food prices to spiral “much further.”

KYLE BASS: [The Fed] clearly, they printed too much money during their COVID response… we’re seeing about a 40% move in the price level of just about everything in our lives.

… 

The hard thing for the Fed is they don’t control things that have supply-side problems with monetary policy… They can’t control the availability of hydrocarbons with rates, and they can’t control the price of food with rates.

Hayman Capital Management founder and CIO Kyle Bass told FOX Business that inflation will cause a ‘significant’ recession and food prices to spiral ‘much further.’ ((Photo by FREDERIC J. BROWN/AFP via Getty Images) / Getty Images)

The inflationary impulse that we’re feeling here is felt all over the world that uses dollars for cross-border settlement… The Fed has got it impossible. I hear they say they’re trying to thread the needle… we’re going to have global famine. We’re going to have food price spiraling much further than we saw during the Arab Spring or even the Tiananmen Square massacre in 89… The Fed’s going to have to deal with that… in one way or another. But I think that the only thing they could do to influence those prices is to bring us into a pretty significant recession, and I hope that doesn’t happen. 

WATCH THE FULL INTERVIEW BELOW: 



Source link

Add a Comment

Your email address will not be published. Required fields are marked *